RUCHI SOYA INDUSTRIES LIMITED · (2) Company Filings. Standalone sales of edible oil segment of...
Transcript of RUCHI SOYA INDUSTRIES LIMITED · (2) Company Filings. Standalone sales of edible oil segment of...
RUCHI SOYA INDUSTRIES LIMITED
CORPORATE PRESENTATION June 2015
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• This document has been prepared for information purposes only and is not an offer or invitation or recommendation to buy or sell any securities ofRuchi Soya Industries Limited (the "Company“ or “Ruchi Soya”), nor shall part, or all, of this document form the basis of, or be relied on in connectionwith, any contract or investment decision in relation to any securities of the Company.
• This document is strictly confidential and may not be copied, published, distributed or transmitted to any person, in whole or in part, by any mediumor in any form for any purpose. The information in this document is being provided by the Company and is subject to change without notice. TheCompany relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness.
• This document contains statements about future events and expectations that are forward-looking statements. These statements typically containwords such as "expects" and "anticipates" and words of similar import. Any statement in this document that is not a statement of historical fact is aforward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performanceor achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-lookingstatements. None of the future projections, expectations, estimates or prospects in this document should be taken as forecasts or promises norshould they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations,estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the document. The Companyassumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes infactors affecting these statements.
• You acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you willconduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company.
• Neither the delivery of this document nor any further discussions of the Company with any of the recipients shall, under any circumstances, createany implication that there has been no change in the affairs of the Company since that date.
Page 1
INDEX
pg.
§ Company Overview 2
§ Key Highlights 7
§ Financial Performance 16
§ Appendix 20
Page 2
COMPANY OVERVIEW
1st
1st
OVERVIEW OF RUCHI SOYA Company Profile
n Listed on BSE (500368) & NSE (RUCHISOYA)
n Consolidated Annual turnover of over US$ 5.04 Bn(1)(2) in FY15
n One of the largest integrated oilseed solvent extraction and edible oil refining companies in India in terms of oilseed crushing and oil refining capacity as of 31 March 2015
− Crushing capacity (12,394 MT/day)
− Refinery capacity (11,120 MT/day)
n Strong Brand Recognition in India
− Branded portfolio including Nutrela, Ruchi Gold and Mahakosh
n Integrated operations:
− Access to over 200,000 hectares of land in India for potential palm oil plantations as on 31 March 2015
n Recognised as the highest exporter of oil meals in India (3) by certain Indian industry bodies
Segmental Revenue Spilt (2)
In INR Million SALES REVENUE
FY2014 FY2015 Change
Extractions 58115 38765 -33.30%
Vanaspati 9154 9956 8.76%
Oils 177046 204400 15.45%
Food Products 5126 5464 6.59%
Wind Turbine 483 490 1.45%
Others 38278 58536 52.92%
Total 288202 317611 10.20%
FY 2015 Revenue Mix
Page 4
Notes:(1) Assuming INR/USD of 62.68(2) On the basis of consolidated financials(3) Globoil Awards 2014(4) Ruchi Soya Industries Ltd’s calculation based in part on data reported by Nielsen through its Retail Index Service for the Refined Oil Consumer Pack Category for period ending Mar MAT 2015 at an All India (U+R)
Market level. (Copyright © 2015, The Nielsen Company)" (MAT refers to moving annual total i.e. a period of 12 months)(5) Fortune 500 India, December 2014, Volume 3 Issue 2
Ruchi Soya: An Award Winning Story
n Among the oldest and most established edible oil players in India, Ruchi Soya’s strong brand recognition enable the Company to maintain its leading position in the industry
ü #1 in Indian Edible Oil Sector: Based on volume sales in overall Refined Oil in Consumer Packs (ROCP) in India (4)
ü #1 in Food and Agri Products in India as per Fortune 500 India’s survey of largest Indian corporations (5)
ü Ranked 156 th in the list of “World’s Top 250 consumer product companies” as per a report titled “Global Powers Of The Consumer Product Industry 2015” published by Deloitte
Growing Sales (2)
INR Bn
Oils, 64%Extractions,
12%
Vanaspati, 3%
Food products,
2%Others,
18%
26 33 39 52 4876 91 117 127
145184
306 303 288318
0
50
100
150
200
250
300
350
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
ORGANIZATIONAL CHART(1)
(1) Shareholding pattern as of 31 Mar 2013 Page 5
Group companies outside India
Group companies within India
Indian OilRuchi BioFuels LLP
(50%)
Indian OilRuchi BioFuels LLP
(50%)
GHI EnergyPrivate Limited
(48.96%)
GHI EnergyPrivate Limited
(48.96%)
RSILBeneficiary
Trust(100%)
RSILBeneficiary
Trust(100%)
Mrig TradingPrivate Limited(100%)
Mrig TradingPrivate Limited(100%)
Ruchi J-OilPrivate Limited(51%)
Ruchi J-OilPrivate Limited(51%)
RuchiWorldwide
Limited(52.48%)
RuchiWorldwide
Limited(52.48%)
Ruchi Agri PLC(100%)
Ruchi Agri PLC(100%)
Ruchi Ethiopia Holding Limited
(100%)
Ruchi Ethiopia Holding Limited
(100%)
Ruchi Industries Pte Ltd(100%)
Ruchi Industries Pte Ltd(100%)
Ruchi AgriPlantation
(Cambodia)Pte. Limited
(100%)
Ruchi AgriPlantation
(Cambodia)Pte. Limited
(100%)
Palmolein Industries Pte.
Limited(100%)
Palmolein Industries Pte.
Limited(100%)
RuchiAgri TradingPte. Limited
(100%)
RuchiAgri TradingPte. Limited
(100%)
Ruchi Soya Industries Limited
(Parent)
Ruchi Soya Industries Limited
(Parent)
Ruchi Agri SARL.(100%)
Ruchi Agri SARL.(100%)
Ruchi Kagome Foods India
Private Limited(40%)
Ruchi Kagome Foods India
Private Limited(40%)
Page 6
LEADING POSITION IN EDIBLE OIL SEGMENTThe Company has an estimated market share of ~16% in the edible oil segment in India. In terms of ROCP category, the Company has attained leadership position with market share of ~ 18.6% as per a recent survey(1)
Ruchi Soya edible oil sales(2)
(000’MT) 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
Industry edible oil consumption 11,807 12,989 14,508 15,247 15,912 16,844 17,885 19,164 20,065
Ruchi Soya edible oil market share (estimated) (3)
Source: USDA FAS
Notes:(1) Ruchi Soya Industries Ltd’s calculation based in part on data reported by Nielsen through its Retail Index Service for the Refined Oil Consumer Pack Category for period ending March MAT 2015 at an All India (U+R)
Market level. (Copyright © 2015, The Nielsen Company)" (MAT refers to moving annual total i.e. a period of 12 months)(2) Company Filings. Standalone sales of edible oil segment of Ruchi Soya Industries Ltd.; excludes the sales for captive consumption(3) Market share estimated based on edible oil sales of Ruchi Soya and Industry edible oil consumption data based on USDA FAS data, prepared by Ruchi Soya
1243
15351598
2380 2398
3095
2697
2468
3251
0
500
1000
1500
2000
2500
3000
3500
FY 07 FY 08 FY 09 FY 10 FY11 FY 12 FY 13 FY 14 FY 15
Qua
ntity
(000
’ M
T)
10.5%11.8%
11.0%
15.6%15.1%
18.4%
15.1%
12.9%
16.2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15M
arke
t Sha
re (%
)
Ruchi Soya edible oil segment :CAGR FY 07 – FY 15 : 13%
Indian edible Oil :CAGR FY 07 – FY 15 – 7%
BUSINESS STRATEGIES
Page 7
üTo capitalize on the supply and demand gap in the edible oil industry in India
üTo increase market share in branded edible oil products and food products in India
üTo continue focus on backward integration
üTo have a global footprint
üTo focus on innovation in our product range to deliver differentiated products
KEY HIGHLIGHTS
KEY HIGHLIGHTS
Page 9
n Our brand portfolio includes brands such as Nutrela, Mahakosh and Ruchi Gold, which enjoystrong brand recognition in the Indian market
n India is one of the leading consumers of edible oiln Significant room for growth in domestic production expected given that the increasing
consumption of edible oil has been primarily met through imports as domestic production is notable to keep pace
n One of the few companies in this industry operating across the value chain from origination,supply chain, manufacturing to branding, which enable us to manage costs more effectively thanseveral of our competitors
n Experienced management team with over four decades of industry experiencen Key members have served or are currently serving as officers of various industry bodies,
recognizing their standing in this sector
Favourable Industry Dynamics
Strong Brand Recognition in India
Fully Integrated Operations
Extensive Distribution Network in India
1
2
3
4
Experienced Management5
n Pan-India presence with strategically located manufacturing facilities striking the right balancebetween proximity to raw materials and markets
n Extensive distribution network in India and a large sales force
45% 17% 14% 6% 7% 9% 3%
Palm SoyabeanRapeseed PeanutCottonseed Sunflower seedOther
FAVOURABLE INDUSTRY DYNAMICS GLOBAL EDIBLE OIL INDUSTRY OVERVIEW
World Edible Oil Consumption (FY15) World Edible Oil Production (FY15)
India is the leading consumer of edible oil with high growth expectation
Palm and Soyabean oil constitute ~62% of the Global Edible Oil Demand
Page 10Source: Global Edible Oil Demand as per USDA FAS
Source: USDA FAS
Source: USDA FAS
1
Brazil, 4%
China, 19%
Argentina, 2%European
Union, 15%
India, 12%
US, 8%
Indonesia, 7%
Others, 34%Indonesia, 22%
China, 14%
Malaysia, 13%Europe,
10%
US, 6%Argentina, 5%
Brazil, 5%
Others, 26%
37 41 44 45 47 49 54 57 61
36 38 36 38 41 42 42 47 4717 18 20 22 23 24 2425 27
11 10 12 11 11 13 1415 15
20 21 21 21 23 23 2423 24
020406080
100120140160180200
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15Others Sunflower Oil Rapeseed Oil Soyabean Oil Palm Oil
Edible Oil63%Pulses
12%
Cashew Nuts7%
Spices3%
Fruits & Nuts6%
Sugar4%
Cotton1% Others
2%
Indian Edible oil demand being substantially met by imports as domestic production has lagged
Oil Consumption In India growing inline with growth in population …
…getting turbo charged by growing per capita income
Edible oils have a significant share in Indian agricultural imports
Source: Ministry of Agriculture (GOI) and DGCI&S) Page 11
Source: USDA FAS, IMF
Source: USDA FAS
Significant growth in per capita consumption can be expected as Indian per capita GDP continues to grow
Source: USDA FAS, IMF
Robust growth in consumption of edible oil .... Rising deficit with domestic production not being able to keep pace
India ProductionIndia Imports
CAGR 2005-2015 Imports: 10.03%CAGR 2005-2015Production : 1.55%
USD
Source: USDA FAS, IMF
FAVOURABLE INDUSTRY DYNAMICS INDIA EDIBLE OIL INDUSTRY - HIGH GROWTH POTENTIAL
1
Per capita oil consumption (Ltr)Million Mn MT MT
0246810121416
0
500
1000
1500
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
E20
12E
2013
E20
14E
GDP / capita Per capita consumption
05
101520253035404550
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
0
5
10
15
20
25
0200400600
80010001200
1400
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Population Total oil consumption
5 5 5 69 9 9 10 11 12 13
6 7 67
6 6 7 7 77 7
0
4
8
12
16
20
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
India Edible Oil Imports
Page 12
Source: USDA FAS (Office of Global Analysis)
India Edible Oil Consumption
Palm oil consumption in India has seen significant growth, and is primarily met through imports, leaving significant room for growth in domestic production
Source: USDA FAS (Office of Global Analysis)
7%
12%
FY07-FY15 CAGR‘000 MT
12%
FAVOURABLE INDUSTRY DYNAMICS INDIA EDIBLE OIL INDUSTRY - HIGH GROWTH POTENTIAL
1
11%FY07-FY15 CAGR
3,65
0 5,01
3 6,86
7
6,60
3
6,66
1
7,47
3
8,36
4
7,82
0
8,85
0
1,44
7 733
1,06
0
1,59
8
945 1,
174 1,
086
1,83
0 2,00
0
20318
583 611776
1114939
1528
1550
140143
278 256200
246317
362
480
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Other Sunflowerseed Soybean Palm
947 1054 1038 1060 1121 1227 1238 1295 1345
36715075
6230 6440 7090 7485 8250 8384 90001433
15821455 1320
12561169
1187 12151135
2133
1967
2097 20962243 2323
2400 26052730
2500
2330
2300 27602610
27502950
33003400
600
398
733912
9911280
11801680
1775
523
574
655659
601610
680
685680
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
22000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
Other Sunflower Soyabean RapeseedPeanut Palm Cottonseed
1180712970
1450815247
1591216844
20065
19164
17885
− Nutrela – Food products/ Refined Oils (Soyabean, Groundnut, Cottonseed, Sunflower , Mustard , Ricebran)
− Nutri Gold – Vanaspati
− Mahakosh – Refined Oils (Soyabean, Groundnut, Cottonseed and Ricebran) & Vanaspati
− Sunrich – Refined Sunflower Oil
− Ruchi Gold – Refined Oils (Mustard and Palmolein)
− Ruchi Star – Refined Soyabean Oil
− Ruchi No. 1 – Vanaspati
STRONG BRAND RECOGNITION IN INDIAP
rem
ium
Page 13
Track record of creating successful brands in a highly commoditized industry. Company has multiple brands for several of their products to cater to different income segments of the Indian retail market
Key Brands
Val
ueM
ass
2
FULLY INTEGRATED OPERATIONSHealthy mix of midstream and downstream, and well on its way to develop an upstream business
n Origination
– Palm plantations across Andhra Pradesh, Karnataka, Mizoram, Gujarat, Orissa and Tamil Nadu
– Access to total agricultural land of 2,00,000 hectares for potential oil palm procurement
n Processing
– Daily capacity (MT)(Mar - 2015):
– Crushing:12,394
– Crude Oil: 2,231
– Soya Meal: 10,163
– Refining: 11,120
– Vanaspati & bakery fats: 1,965
– Textured soya protein: 389
– Edible soya flour: 300
n Products
– Key products
– Edible oil
– Seed extractions,
– Vanaspati
– Food productions
– Key brands include Nutrela, Ruchi Gold, Ruchi Star, Sunrichand Mahakosh
n Merchandising and distribution
– As of 31 March 2015, 106 company depots through India with storage and logistical facilities
– As of 31 March 2015, pan-India non-exclusive distribution network covering 5,642 distributors reaching over 725,000 retail outlets
Origination CustomerProcessing ProductsMerchandising
and distribution
Finance / Risk management / Logistics coordination
Information flows / Visibility across value chain
Page 14
One Of The Few Edible Oil Companies in India with Integrated Operations
3
EXTENSIVE DISTRIBUTION NETWORK IN INDIA
Page 15
n Processing plants across 22 locations in India, giving access to markets across India
n 106 company depots (with storage and other logistical facilities) which serve 5,642 distributors across the country reaching over 725,000 retail outlets
n All refining plants located near ports, providing easier access to imported edible oil
n Distribution through pipes at ports saves transport cost and timen Inland crushing plants located in key soya bean and mustard producing
states
Crushing in Soya bowl of India
Proximity to Ports
Pan India Footprint
We have a large distribution presence in India. As of March 31, 2014, we have 21 manufacturing locations, 11 wind power generating locations and 106 company depots across India. In terms of distribution, we have 5,642 non-exclusive distributors in India, covering over 2,210 towns and over 725,000 retail outlets.
Strategic Manufacturing locations
Note: Manufacturing and other locations as on March 2012 Map for representation purpose only - Not to scale
Strategically located facilities striking the right balance between proximity to raw materials (cultivating states and ports) and proximity to markets.
4
Pan India Presence
2
3
15
16
17
106 12
13
11
4
14
97
8
Plant location
Jammu
HaldiaGaderwada
Nagpur
Vijaywada
Kakinada
Guna
PipariaManglia
Sriganganagar
Baran
Kota
Kandla
Patalganga
Manglore
Chennai
18
1
Washim
Daloda
5
Krishnapatnam
Durgawati19
2021
Cities Activity Access to PortsCrushing Refining Vanaspati Soya food
1 Jammu ü2 Ganganagar ü ü3 Baran ü ü4 Kota ü ü5 Guna ü6 Kandla ü ü ü7 Piparia ü8 Gadarwara ü ü9 Haldia ü ü ü ü10 Manglia ü ü ü ü11 Nagpur ü ü12 Washim ü13 Daloda ü14 Patalganga ü ü ü ü15 Mangalore ü ü ü16 Chennai ü ü ü ü17 Kakinada (A.P) palm mill ü18 Vijaywada (A.P) palm mill ü19 Durgawati (Bihar) ü ü20 Mysore (Palm Crushing) ü21 Krishnapatnam ü ü ü
Mysore
EXPERIENCED MANAGEMENT
n Experienced management team with over four decades of industryexperience
n Credited with the growth and development of the soya and soyaprocessing industry in India
n Key members have served or are currently serving as officers of variousindustry bodies, recognizing their standing in sector
n Promoter Directors have bagged several awards from variousinstitutionsin recognition of their contribution to the Industry
5
Page 16
FINANCIAL PERFORMANCE
CONSOLIDATED FINANCIAL PERFORMANCE
Page 18
INR Million FYE MAR 11 FYE MAR 12 FYE MAR 13 FYE MAR 14 FYE MAR 15
Total Revenue 183,729 305,835 303,072 288,202 317,611
EBITDA(1) 7,173 10,080 11,493 8,815 7616
EBITDA (% of gross revenues) 3.9% 3.3% 3.8% 3.1% 2.4%
Finance Cost(2) 2,550 6,625 6,225 6,650 5512
Depreciation & Amortisation 1,458 1,729 1,657 1,769 1603
Profit Before Tax 3,381 1,957 3,610 396 1025
Profit after Tax(3) 2,252 869 2,732 1.7 800.3
Source: Company Filings. (1) EBITDA = Total Revenue – Total Expenses(2) Finance cost = Interest expense + Other Borrowing Costs + Net Loss of Foreign Currency Transactions (3) Profit after tax excludes profit attributable to Minority Interest
CONSOLIDATED BALANCE SHEET
Page 19
INR Million FYE MAR 11 FYE MAR 12 FYE MAR 13 FYE MAR 14 FYE MAR 15
Net Fixed Assets Incl. CWIP 24,165 27,375 28,743 28,479 25,674
Cash and Cash balances 19,547 33,151 42,962 10,289 5,782
Inventories 32,045 41,614 35,628 37,415 31,599
Total Assets 111,460 146,142 168,222 140,949 148,670
Long-term Borrowings 10,372 11,982 14,164 15,023 11,108
Short-term Borrowings 37,699 53,431 59,602 23,525 30,711
Gross Borrowings 48,071 65,413 73,766 38,548 41,819
Net Borrowings(1) 28,524 32,262 30,804 28,259 36,037
Shareholders’ Funds (Equity) (2) 22,375 22,499 24,719 24,901 23,547
Total Capitalization(3) 50,899 54,761 55,523 53,160 59,584
Source: Company filings(1) Net Borrowings = Gross Borrowings – Cash and cash balances(2) Shareholders’ funds = Paid up Capital + Retained Earnings + Minority Interest(3) Total Capitalization = Consolidated Net Borrowings + Shareholders’ Funds
SUMMARY CONSOLIDATED FINANCIALS AND RATIOS
Page 20
Revenues EBITDA
Long Term Borrowings Long Term Debt / Equity
INR BnINR Bn
INR Bn
Total Assets
Net Borrowings / Total Capitalization (2)
INR Bn
Source:(1) Long Term Debt / Equity = Long Term Borrowing / Equity(2) Net Borrowings = Gross Borrowings – Cash and cash balances; Total Capitalization = Consolidated Net Borrowings + Shareholders’ Fund
0
50
100
150
200
250
300
350
FY11 FY12 FY13 FY14 FY15
184
306 303288
318
0
2
4
6
8
10
12
FY11 FY12 FY13 FY14 FY15
7.17
10.08
11.49
8.827.62
0.45
0.50
0.55
0.60
0.65
FY11 FY12 FY13 FY14 FY15
0.56
0.59
0.55
0.53
0.60
020406080
100120140160180
FY11 FY12 FY13 FY14 FY15
111
146
168
141 149
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
FY11 FY12 FY13 FY14 FY15
0.460.53
0.57 0.60
0.47
0
50
100
150
200
FY11 FY12 FY13 FY14 FY15
103.72119.82
141.64 150.23
111.08
APPENDIX
ABBREVIATIONS
Page 22
Abbreviations Used Description
FY / FYE Financial Year
9ME 9 Months Ending
Mn Million
Bn Billion
yr Year
MT Metric Tonnes
MTPA Metric Tonnes per annum
BSE BSE Limited
NSE National Stock Exchange of India Limited
INR Indian Rupee
US$ United States Dollar
USDA FAS United States Department of Agriculture Foreign Agricultural Service
IMF International Monetary Fund
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